POST UTME AL-HIKMAH UNIVERSITY 2017 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's balance sheet as at 31st December 2022 is as follows: Fixed assets: ₦1,500,000 Current assets: ₦1,200,000 Total assets: ₦2,700,000 Equity: ₦1,200,000 Long-term liabilities: ₦800,000 Short-term liabilities: ₦600,000 What is the amount of working capital?
A. ₦400,000
B. ₦500,000
C. ₦600,000
D. ₦700,000
Question 2
A company's balance sheet shows a current asset of ₦50,000 and a non-current asset of ₦150,000. What is the total amount of assets?
A. ₦200,000
B. ₦200,000 + ₦50,000
C. ₦200,000 + ₦150,000
D. ₦200,000 + ₦50,000 + ₦150,000
Question 3
A company issues 10,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.
A. ₦150,000
B. ₦100,000
C. ₦200,000
D. ₦250,000
Question 4
A company's financial statements for the year ended December 31, 2022, are as follows: Trading Profit: ₦2,500,000; Profit Before Tax: ₦3,200,000; Tax Expense: ₦800,000. What is the company's Net Profit for the year?
A. ₦2,400,000
B. ₦2,600,000
C. ₦2,800,000
D. ₦3,000,000
Question 5
A manufacturing company uses the process costing method to account for its production costs. The company has two departments: Cutting and Assembly. The Cutting department has a total cost of ₦120,000 and the Assembly department has a total cost of ₦150,000. What is the total cost of production for the company?
A. ₦270,000
B. ₦270,000 + ₦120,000
C. ₦270,000 + ₦150,000
D. ₦270,000 + ₦120,000 + ₦150,000
Question 6
A partnership has two partners, A and B. Partner A has a 60% interest in the partnership and Partner B has a 40% interest. The partnership has a net income of ₦500,000 for the year. How much of the net income will Partner A receive?
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 7
A company uses the weighted average method to value its inventory. The cost of goods available for sale is ₦1,200,000. The beginning inventory is ₦300,000. The ending inventory is ₦400,000. What is the cost of goods sold?
A. ₦800,000
B. ₦900,000
C. ₦1,000,000
D. ₦1,100,000
Question 8
A company's public sector accounting system shows a revenue of ₦1,200,000. The expenses are ₦900,000. What is the net surplus?
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 9
A company's manufacturing overheads are allocated to its products using the machine-hours method. If the total overheads for the year amount to ₦1,500,000 and the company operates 2,000 machines for 8,000 hours, while 1,500 machines operate for 6,000 hours, what is the overhead rate per machine-hour?
A. ₦0.75
B. ₦0.90
C. ₦1.00
D. ₦1.25
Question 10
A company's trial balance shows a debit balance of ₦1,500 in the account 'Rent Received' and a credit balance of ₦1,200 in the account 'Rent Paid'. What is the correct journal entry to record the correction of this error?
A. Debit Rent Paid ₦300, Credit Rent Received ₦300
B. Debit Rent Paid ₦300, Credit Rent Received ₦300 and Debit Profit and Loss ₦300
C. Debit Rent Paid ₦300, Credit Rent Received ₦300 and Credit Profit and Loss ₦300
D. Debit Rent Paid ₦300, Credit Rent Received ₦300 and Debit Rent Received ₦300
Question 11
A company has the following financial statements: Balance Sheet and Income Statement. Which of the following statements is NOT a financial statement?
A. Balance Sheet
B. Income Statement
C. Cash Flow Statement
D. Statement of Changes in Equity
Question 12
A company has a profit of ₦80,000 and a loss of ₦30,000. What is the net profit?
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 13
A company's manufacturing overheads include depreciation on machinery, salaries of production staff, and indirect materials. The company's total production cost for the year is ₦1,500,000. If the depreciation on machinery is ₦150,000 and the salaries of production staff are ₦200,000, what is the amount of indirect materials used?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 14
A company's financial statements for the year ended December 31, 2022, are as follows: Trading Profit: ₦2,500,000; Profit Before Tax: ₦3,200,000; Tax Expense: ₦800,000. What is the company's Net Profit for the year?
A. ₦2,400,000
B. ₦2,600,000
C. ₦2,800,000
D. ₦3,000,000
Question 15
A company's manufacturing account shows a cost of goods manufactured of ₦1,800,000. The beginning work-in-progress is ₦200,000. The ending work-in-progress is ₦300,000. What is the cost of goods sold?
A. ₦1,500,000
B. ₦1,600,000
C. ₦1,700,000
D. ₦1,800,000

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